Goldman Sachs Analysts Say that It’s Time to Buy Bitcoin
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August 12, 2019
Goldman Sachs Securities Division analysts, in a note to investors, have shared a bullish attitude towards Bitcoin. They even encourage investors to buy Bitcoin on this dip.
Recently, Three Arrows Capital CEO Su Zhu has shared the Goldman Sachs note which was sent out to investors. In the note, Goldman Sachs analysts suggest that buying this Bitcoin dip is a prime opportunity. The note itself consisted of a Bitcoin CMI futures chart and a comment from the analysts.
What is more surprising: that Goldman Sachs has a bullish target on $BTC, that they have any target at all, or that they use Elliott Wave Theory?
I’m personally most surprised they cant be bothered to use a chart that includes weekend price action. pic.twitter.com/ocpq7hr0qv
— Su Zhu 🦁 (@zhusu) August 12, 2019
First of all, the fact that Goldman Sachs is sending out crypto, in this particular case, Bitcoin advice to their investors is mind-blowing. Also, the fact that they are seeing it as a bullish pattern and they are using the Elliot Wave Theory indicators on their Bitcoin chart is also a big surprise.
Experts point out that the fact that the Bitcoin CMI futures chart is used means that this note is being sent out only to institutional investors. You can see this by the little gaps in the chart which are weekends. That is the time when CMI Bitcoin Futures markets are closed.
What does the Note Say?
In short – the experts are quite bullish for Bitcoin to go up. Basically, they have set up a short-term price target of $13,971 – yes, specifically this one.
In detail – they believe that Bitcoin will find a support level near $11,094 and $10,791. Once it does that, the analysts say that the chart has plenty of room to break out at least to $12,916, and possibly to a new 2019 ATH – $13,971.
“Reaching these levels could mean completing a v wave count from July. Bottom line, watch for a short-term top/consolidation once satisfied,” says the note.
But this is a short-term prediction. What about long-term? Well, according to Goldman Sachs analysts, anything below $13,000 is an indication to accumulate. They believe that we are in for a similar run-up like we saw recently this year when Bitcoin went from $7,600 to around $11,900 in a matter of a couple of weeks.
“In the bigger scheme of things, this might still be the first leg of another 5-wave count similar to the trend that lasted from Dec ‘18 through Jun ’19,” reads the note.
Also, another thing which recently was highlighted – Bitcoin loves 30% pullbacks. Some experts and analysts have noticed that after a healthy 30% pullback, Bitcoin always have recovered and this is even considered as a normal investment strategy. Hence, it is 100% sure that Bitcoin will have a run-up if it has fallen by approx. 30%.
Three certainties in life:
3. Buying the 30% pullback on Bitcoin will provide a solid ROI
— Josh Rager 📈 (@Josh_Rager) August 7, 2019
So in short – Goldman Sachs says that we all need to buy Bitcoin. But, as usual, only the time will show whether this advice was definitely the one that investors should have followed.